SQL Network Interfaces, error: 26 - Error Locating Server/Instance Specified
If you are sure that there are no firewalls blocking connections between the two machines, and that the server is configured to accept remote TCP connections, then the likely solution is to start the SQL Server Browser service on the remote machine.
More information:
SQL Server Browser service: http://msdn.microsoft.com/en-us/library/ms181087.aspx
Configure remote connections on SQL Server 2005: http://support.microsoft.com/kb/914277